learning curve solutions - Learning Curve Solutions 1....

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Learning Curve Solutions 1. Captain Nemo, the owner of the Suboptimum Underwater Boat Company (SUB), is puzzled. He has a contract of 11 boats and has completed 4 of them. He has observed that his production manager, young Mr. Overick, has been reducing the number of people working on the contract. The first boat, for example, required 225 workers, while 45 fewer workers were required for the second boat. Overick has told them that “This is just the beginning!” and that he will complete the last boat in the current contract with only 100 workers. Overick is banking on the learning curve, but has he gone too far? SOLUTION: Number of workers required for second boat = 225 – 45 = 180 The learning rate is: b = 180/225 = 0.80 (80% learning curve) K = 225 (number of workers needed for the first boat) n = ln ( b )/ ln (2) = ln (0.80) / ln (2) = -0.223 / 0.693 = -0.322 Y ( x ) = Kx n Y (11) = 225(11) -0.322 = 103.95 Unfortunately, young Mr. Overick has overestimated the learning curve… he will NOT be able to produce the 11 th boat with only 100 workers.
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2. SUB has produced the first unit of a new line of minisubs at a cost of $500,000 -
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This note was uploaded on 09/29/2011 for the course MGT 3501 taught by Professor Chang during the Fall '10 term at Georgia Institute of Technology.

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learning curve solutions - Learning Curve Solutions 1....

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